If you are one of the lucky, or financially frugal people who always manage to pay off your credit card every month it can be extremely difficult to find out which is the best credit card for you. After all, most adverts you see these days make big news of 0% offers or low standard rates which actually doesn’t make a difference to you as you never get charged interest anyway.
That’s where the reward / cashback based credit cards come in. These offer the credit card holder a reward - be it cashback or some sort of points program.
Always keep in mind that these cards generally have a higher interest rate than others on the market and if you do carry a balance on your card the interest you will be charged often outweighs any rewards that are offered and you could save more money by switching to a cheaper credit card.
All the reward cards be they cashback or points based work in a similar way. For every pound you spend on the card (generally excluding balance transfers) you will a certain proportion of that spend as cashback or points which can be redeemed in different ways depending on how the individual scheme operates.
The value and merits of each reward scheme are very hard to compare (apart from straight cashback schemes) as they vary enormously in terms of points earned and how these can be redeemed.
